Islamic banks' losses in the first wave of the 2008 financial crisis were minimal and some Islamic banks remained profitable despite the decline in economic activity.One of the reasons put forward for this resilience is that Islamic financial institutions are prohibited from dealing in loans and debts and are not allowed to trade in the derivatives market.

Question

Quizplus · Accepted Answer

Islamic financial institutions are indeed prohibited from dealing in loans and debts and are not allowed to trade in the derivatives market, which is one of the reasons for their resilience during the 2008 financial crisis.

Islamic Banks' Losses in the First Wave of the 2008